S&P rates Mylan add-on BB-

Standard & Poor's said it affirmed its BB- issue-level and 5 recovery ratings on Mylan Inc.'s 7 7/8% senior unsecured notes due 2020 following the company's $300 million add-on, which increased the amount of the notes outstanding to $1 billion. The corporate credit rating on Mylan is BB.

The outlook is stable.

The proceeds from the add-on will form a portion of the financing for the $550 million acquisition of Bioniche Holdings Ltd.

The agency said the ratings on Mylan reflect its still-significant debt burden incurred to fund the acquisition of Merck KGaA's largely European generic drug business and more than $3 billion in debt maturities through 2014.

Mylan's position as the No. 3 company in the growing generics market, where size and geographic reach are increasingly important competitive factors, partly offsets those factors, in S&P's view. Also, the agency believes debt will continue to decline given Mylan's increasing cash generation.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.